A group of government advisers has resigned in protest at David Cameron’s
decision not to introduce a minimum price for alcohol.

Plans to charge at least 40p for every unit of alcohol sold in shops and bars were formally shelved, along with a pledge to outlaw “multi-buy” offers on drinks in supermarkets.

Instead, ministers will relax laws on serving alcohol at events and will make it easier for businesses such as hairdressers or bed and breakfasts to offer wine to their customers.

It will become illegal to sell alcoholic drinks at below the level of tax that shops have to pay on the products on their shelves. This will mean that from spring next year, a can of lager cannot be sold for less than about 40p.

But organisations including Cancer Research UK and Alcohol Research UK condemned the decision and accused the government of caving in to “shameful” lobbying from the drinks industry.

A key adviser, Nick Sheron, resigned as co-chair of the Department of Health’s alcohol network, which drives efforts to promote responsible drinking, in protest at the decision.

Cancer Research UK, the Faculty of Public Health, and the UK Health Forum also formally withdrew from the same government programme, which is part of the department's Responsibility Deal with the industry.

In a joint statement, they said they were “extremely disappointed” that Mr Cameron had decided to abandon the plan to “save lives” by banning the sale of the cheapest drinks.

Under reforms detailed by the Home Office, there will also be no ban on “multi-buy” discount offers in supermarkets for drinks, despite suggestions that such deals would be outlawed.

Instead, it will become illegal to sell alcoholic drinks at below the level of tax that shops have to pay on the products on their shelves.

This will mean that from spring next year, a can of lager cannot be sold for less than about 40p.

The new policy represents a significant retreat from Mr Cameron's promises to impose a minimum price on alcohol sales.

In 2011, the Coalition said it would enforce a ban on alcohol sales “below the rate of duty plus VAT”.

The government went further in 2012, announcing that a minimum price of at least 40p per unit of alcohol should be introduced and Mr Cameron has indicated his own support for the policy.

He acknowledged that he had spoken about the “merits” of a minimum price and insisted that the reforms the government was introducing amounted to a similar policy.

Speaking at a press conference in Downing Street, the Prime Minister said: “We are introducing today what is effectively a minimum price.” It will be “illegal” to sell alcohol below the price of duty plus VAT, he added.

The idea of a minimum unit price for alcohol “has merit” but lacks evidence to back it up, Mr Cameron said, adding that if more research showed that it worked he would be “happy” to reconsider the policy.

The about-turn was formally announced in the Commons by the Home Office Minister, Jeremy Browne.

“There has been much speculation about the government’s plans on minimum unit pricing,” the minister told MPs.

“This will remain a policy under consideration but will not be taken forward at this time.

“We do not yet have enough concrete evidence that its introduction would be effective in reducing harms associated with problem drinking, without penalising people who drink responsibly.

“We will tackle the most egregious examples of cheap alcohol by banning sales of alcohol below the level of alcohol duty plus value added tax.

“This will come in to effect in England and Wales no later than Spring 2014 and will stop the worst instances of deep discounting which result in alcohol being sold cheaply and harmfully.

“It will no longer be legal to sell a can of ordinary strength lager for less than about 40 pence.”

Some Tory MPs have criticised the reforms by saying that it should not be up to government to seek to dictate how individual citizens behave.

Sir Edward Leigh, a Conservative MP, said the liberal elites would not be prevented from drinking expensive claret by a minimum unit price, adding: “Why should we price the poor out of alcohol? Why shouldn’t we trust them?”

However, Keith Vaz, the Labour chairman of the Home Affairs Committee, expressed "huge disappointment" at the decision not to proceed with a minimum price. Sarah Wollaston, the Conservative MP for Totnes, and a GP, also criticised the plan.

Mr Browne insisted that the government was right to seek to curb “excessive drinking”.

“Drunken behaviour and alcohol-fuelled disorder can make towns and cities effective no-go areas for law-abiding people, particularly on Friday and Saturday nights,” he said.

“In nearly half of incidents of violence in 2011/2012, the victim believed the perpetrator was under the influence of alcohol. Excessive alcohol consumption costs the taxpayer huge amounts of money. Alcohol-related crime and health harms are estimated to cost society around £21 billion every year.”

Mr Browne said it would be wrong to put more pressure on responsible families, who are already "trying hard" to make ends meet.

He said the alcohol industry now had a chance to "demonstrate what more it can do" to reduce the damage that excessive drinking can cause.

Irresponsible drinks promotions in pubs and clubs face "tougher action" while customers will be made more aware of the availability of "small servings", he said.